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The Maloof family refused to comment today on a news report that it might sell a controlling stake in the Palms Casino Resort in Las Vegas.
Brothers Joe and George Maloof, co-owners of the Sacramento Kings, had no comment on the Bloomberg news service report that the family might sell the stake to Leonard Green & Partners, a buyout firm, and Texas-based TPG Capital, which owns Caesars Entertainment Corp.
Bloomberg, quoting anonymous sources, said the Palms breached some of the covenants on its loans, which are held by the Green firm and TPG. Because of the breach, the two lenders have entered into negotiations to take a controlling equity stake in the resort. A breach could occur even if the borrower is current on payments but fails to maintain certain minimum profitability milestones demanded by lenders.
The Palms has encountered significant financial stress, like many Las Vegas casinos, but in an interview in October George Maloof said the resort was successfully restructuring its debt and was seeing improvement in operations.
Credit:Dale Kasler and Tony Bizjak
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